Marsh & McLennan Companies, Inc. - MMC STOCK NEWS

The 16th annual Mercer CFA Institute Global Pension Index (MCGPI) has been released, highlighting the need for retirement system improvements globally. The Netherlands retained its top spot as the world's leading retirement income system, followed by Iceland and Denmark. The report emphasizes the challenges posed by falling birth rates and increasing longevity.

Key findings include:

• The shift from defined benefit (DB) to defined contribution (DC) plans introduces new financial planning challenges for future retirees
• DC plans offer increased flexibility and personalization, which is important as people live longer and retirement concepts evolve
• Significant reforms are needed to meet retirees' financial needs and changing work expectations
• The Netherlands scored highest overall (84.8), as well as in adequacy (86.3)
• Iceland led in sustainability (84.3), while Finland topped the integrity sub-index (90.8)

The report calls for collaboration between governments, policymakers, the pension industry, and employers to ensure dignified and financially stable retirements for aging populations.

Mercer's 2024 Absence and Disability Management Survey reveals significant changes in paid leave benefits. Compliance with state and local mandates has become the top concern for employers, with 70% ranking it as a priority, up from 50% in 2021. To address this, 72% of employers have increased resources for compliance.

Paid parental leave has surged from 25% in 2015 to 73% in 2024, with an average of 8 weeks offered. Employers are also making these programs more inclusive, covering adoption (67%) and surrogacy (33%). Flexible PTO has increased, with 32% of employers offering it to some employees, up from 20% in 2021.

Companies are recognizing more diverse reasons for leave, including pregnancy loss (62%) and miscarriage (58%). The observance of Juneteenth as a company holiday has risen from 9% in 2021 to 41% in 2024, while Martin Luther King Jr. Day observance increased from 55% to 63%.

Marsh McLennan (NYSE: MMC) has announced an agreement to acquire McGriff Insurance Services, through its Marsh McLennan Agency business. McGriff, a leading U.S. provider of insurance broking and risk management services, generated $1.3 billion in revenue for the trailing twelve months ended June 30, 2024. The acquisition, valued at $7.75 billion in cash, will be funded by cash and debt financing. Marsh McLennan will also assume a deferred tax asset valued at approximately $500 million.

The transaction is expected to close by year-end, subject to regulatory approval. McGriff's team of over 3,500 employees, including CEO Read Davis, will join Marsh McLennan Agency while continuing to operate from their existing locations. This acquisition will enhance Marsh McLennan Agency's capabilities across commercial property and casualty, employee benefits, management liability, and personal lines.

WeBank and Oliver Wyman have released a report on global digital banking trends. Key findings include:

• By end of 2023, there were 235 licensed digital banks globally, with over 300 offering broader digital banking services
• Digital banks are exploring sustainable business models, diversified revenue streams, ecosystem resources, multi-market operations, and technological innovation
• Two effective business models have emerged: retail-driven for large populations and niche-focused for smaller markets
• Digital banks are leveraging unique ecosystem resources and expanding across multiple markets
• They play a important role in data infrastructure development and industry innovation
• Digital banks are now seen as 'catfish' promoting healthy competition rather than disruptors
• Leading digital banks have achieved economies of scale and strong profitability

The report predicts widening gaps between industry leaders and followers, with potential for establishing industry standards.

Marsh McLennan (NYSE: MMC), a global leader in risk, strategy and people, has announced its plans to release third quarter financial results on Thursday, October 17, 2024, before the market opens. The company will host an investor teleconference at 8:00 a.m. EDT on the same day, led by President and CEO John Doyle and CFO Mark McGivney. The event will include a question-and-answer session and will be accessible via a live audio webcast on marshmclennan.com. Interested participants can register online to receive dial-in numbers and a unique PIN for the call.

Marsh McLennan (NYSE: MMC) has announced a quarterly dividend of $0.815 per share on its outstanding common stock. The dividend is set to be paid on November 15, 2024, to stockholders of record as of October 4, 2024. This declaration by the Board of Directors demonstrates the company's commitment to returning value to its shareholders and maintaining a consistent dividend policy.

Mercer's 2024 National Survey of Employer-Sponsored Health Plans reveals that US employers expect health benefit costs to rise 5.8% per employee in 2025, marking the third consecutive year of increases above 5%. Key findings include:

- Smaller employers (50-499 employees) face a potential 9% cost increase without mitigation measures
- Prescription drug costs continue to be the fastest-growing component, rising 7.2% in 2024
- 53% of employers plan to make cost-cutting changes to their plans in 2025, up from 44% in 2024
- Employees will contribute 21% of health insurance premiums through paycheck deductions in 2025

Factors driving higher costs include healthcare worker shortages, health system consolidation, and the introduction of high-cost gene and cellular therapies. Employers face the challenge of balancing healthcare affordability for employees with sustainable organizational spending.

Aon and Marsh McLennan (NYSE: MMC) have called on the (re)insurance industry to support Ukraine's resilience by removing blanket exclusions and differentiating Ukraine from Russia and Belarus in risk assessments. The firms emphasize that this action would catalyze economic growth and strengthen Ukraine's foundations for a post-conflict economy.

Key points:

• Many global reinsurers have grouped risks from Ukraine, Russia, and Belarus together, limiting (re)insurance capital.
• Both companies are working with governments and organizations to support Ukraine's economy.
• Marsh McLennan expanded its public-private partnership to cover shipping to and from Ukraine's ports.
• Aon created a first-of-its-kind insurance program for war risk policies in Ukraine.
• The firms argue that data-driven risk assessment can enable more impactful insights for Ukraine's reconstruction.

Aon and Marsh McLennan have called on the (re)insurance industry to support Ukraine's resilience by removing blanket exclusions and providing essential insurance capital. The firms emphasize that current exclusions, which group Ukraine with Russia and Belarus, impede economic growth and ignore the diversity of risk within the country. They argue that data-driven risk assessment should guide (re)insurance decisions, recognizing Ukraine's efforts to align with free and democratic economies.

Both companies are actively working with governments and international organizations to support Ukraine's economy. Marsh McLennan has expanded its public-private partnership to cover shipping to and from Ukrainian ports, while Aon has created a war risk insurance program with the U.S. International Development Finance These initiatives aim to stimulate economic expansion and strengthen Ukraine's foundation for post-conflict reconstruction.